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March 30, 2015

GBTA Opposes Proposed Airport Tax Hike

The Global Business Travel Association has joined several traveler groups in support of Airlines for America’s opposition to the proposed near doubling of the Passenger Facility Charge – or Airport Tax – which would also increase automatically every year.

As Airlines for America claimed on its website, "airports have the resources they need and passengers already pay too much in air taxes. Congress should hold the line on the Airport Tax and keep the PFC cap where it is...Unlike other transportation infrastructure, airports enjoy a variety of funding sources for improvement projects. Airports are extremely well-financed, have healthy balance sheets and ample access to the bond market. They also receive billions of dollars annually in government grants. These resources, combined with the substantial investments in airports that airlines make directly, provide airports with the funds they need for improvement projects today, and well into the future."

“Some groups want to increase the PFC to $8 per boarding," Michael W. McCormick, GBTA Executive Director and COO, said in a statement. "That, along with other taxes and fees, means that a business traveler could see an increase of $58.20 for a round trip ticket. Travelers don't need to be the piggy bank. Beyond the investments made by airlines, airports have more than $11 billion in unrestricted cash and investments while bringing in more revenue every year - a record-high $24.5 billion in 2013. In addition, two-thirds of GBTA members surveyed have said they oppose a PFC increase.

“Road warriors strengthen the economy, create jobs and drive economic security. Travel should be promoted. The business traveler already faces an overbearing burden from taxes and fees and GBTA is very concerned that they are approaching the tipping point that will ultimately push business travelers to stay at home.”

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